Every dentist wants to build a profitable practice, but making it happen is easier said than done. However, instead of spinning your wheels and wasting time, money, and energy trying to get it right, take the smarter path! There’s a secret weapon that will enable you to create financial accountability and improve your profitability, and it’s incredibly simple: consistent reporting! Like Kirk says, “what gets measured improves, but what gets measured and reported on improves exponentially.”
Reporting is an incredible tool, because when you do it accurately and consistently, it will highlight any financial gaps in your practice where you’re losing money. Knowing exactly how money moves through your practice is crucial, and the accountability it creates will help your practice run like a well-oiled machine.
There are many opportunities for data collection in a practice, but the following are some of the most effective reports you can run, as well as some tips for how to maximize the data you gather:
- Production—break down this data by provider, procedure type, and time frame to ensure that everything you do is being accounted for. Have your providers review this report daily.
- Collections—this report enables you to track your payments, and by comparing it to your Production, you can discover any discrepancies that exist.
- Adjustment—organize your adjustments into categories so you can review them daily, ensuring they are accurate and allocated to the correct providers. It’s important to have specific categories for strategic planning.
- Daily Deposit—create accountability and safeguard your practice against errors or fraud by matching this report to your daily collections total and identifying any discrepancies.
- Procedures Not Attached to a Claim—by running this report weekly, you’ll be able to ensure that all unbilled procedures are quickly linked to claims for submission.
- Unsent Claims—run this report on a weekly or monthly basis to identify any claims that are currently in limbo, and then resolve any errors or missing information.
Remember, running these reports is just the first step—you must utilize the data if you want to truly make an impact! I recommend that you create a system of daily, weekly, and monthly checklists. Then, make sure they’re consistently analyzed by the administrative team to ensure that you’re on track to better financial stability and profitability!
To help you take the next step, join the Best Practices Association and receive the support you need. Then, join us at our April meeting of the To The Top Study Club and learn the secrets of Smart Practice Management!
For more information about ACT and how we can help you build a Better Practice and a Better Life, reach out to Gina!
Tune in next time as we discuss the right way to handle conflict!
